OMV, Gazprom Agree Joint Development Plan for Urengoy Field

OMV announced Friday that it has reached an agreement with Gazprom to participate in the development of areas IV and V of the Achimov formation in the Urengoy oil, gas and condensate field in Siberia.

If the deal is concluded, OMV will acquire a 24.98 percent stake in the project in exchange for a participation in assets of OMV. These assets have not yet been identified. According to Gazprom’s website, 211 trillion cubic feet of natural gas, 11 million tons of oil and 140 million tons of gas condensate have been extracted from the Urengoy field over the last three decades. The term sheet for the latest deal between OMV and Gazprom was signed at the same occasion as the multi-party shareholder agreement for the Nord Stream 2 gas pipeline project.

Commenting on the agreement, OMV CEO Rainer Seele said in a company statement:

"This agreement is another step towards cooperation along the entire value chain with Gazprom. We are importing gas from Russia for our European customers. We are investing together into the security of supply realizing the Nord Stream 2 project and we are now extending our trustful partnership towards the production of natural gas in Siberia."

OMV announced on June 18, 2015 that it had signed a non-binding memorandum of understanding with Gazprom regarding the development of areas IV and V of the Achimov formation in the Urengoy field.